Published: 2020-03-02 07:38:50 CET
AUGA group
Interim information

CORRECTION: Notice on Interim information on AUGA group, AB for the 12-month period ended 31 December 2019

Correction: the information in the table of the notice was corrected.

During the twelve months of 2019, AUGA group, AB and its subsidiaries’ (hereinafter - the Group) results showed improvement in all the business segments.

Sales revenue amounted to EUR 71.13 million, demonstrating an  increase of 30% compared to the same period in 2018, when it totalled EUR 54.75 million.

The Group’s gross profit for year of 2019 amounted to EUR 11.92 million and showed  186% growth or was EUR 6.81 million higher, compared to the same period in 2018 (gross profit for year 2018 was EUR 3.66 million).

Per twelve months period of 2019, Group’s net loss amounted to EUR 2.44 compared to net loss of EUR 5.98 million a year earlier. It should be noted that the financial results of both 2019 and 2018 were highly affected  by several one-off events and changes in accounting standards and policies. These  are discussed in the consolidated interim financial statements and management report. Excluding aforementioned effects, the Group would have incurred EUR 1.2 million net loss during the year of 2019 compared to EUR 7.32 million net loss during the year before.

The Group’s EBITDA for the twelve months of 2019 amounted to EUR 17.19 million, or EUR 11.05 million when eliminating IFRS16 effect. During the same period in 2018, the Group’s EBITDA amounted to EUR 3.55 million.

“This year, AUGA group's results showed improvement in all the business segments. Higher sales in the mushroom segment, higher sales and production  efficiency in the dairy segment and, despite the unfavorable weather conditions, significantly improved results of the crop segment (compared to the previous year), altogether contributed to the overall results of the Group. We are improving every year, gaining more experience and preparing the soil better. The importance of the improvements is visible even when under adverse weather conditions. Therefore, we believe that in the future the Group's financial results will further reveal our potential.” - says Kęstutis Juščius, CEO of AUGA group, AB.

Main financial results, EUR’00012 months of 201912 months of 2018Change, %
Revenues71.1354.7530%
Gross profit (loss)11.923.66186%
Net profit (loss) (eliminating IFRS 16 effect)(2.02)(5.98)66%
Net profit (loss) (without elimination of IFRS 16 effect)(3.02)Data not available-
EBITDA (eliminating IFRS 16 effect)11.053.55311%
EBITDA (without elimination of IFRS 16 effect)17.19Data not available-

Crop growing segment

Sales

Crop growing segment sales revenue for twelve months period of 2019 amounted to EUR 29.49 million compared to EUR 17.48 million for the same period in 2018 (with a 69% increase).

Harvest

Despite the unfavorable weather conditions, the Group evaluated EUR 3.83 million gain on recognition at fair value of agricultural produce at point of harvest, comparing to EUR 3.49 million loss in 2018 in 2019. At 31 December, 2019, the Group evaluated the situation with the winter crops and recognized EUR 1.45 m gain at fair value of biological assets.

Gross result

Gross profit from crop growing segment, encompassing the results of agricultural produce sales , gain (loss) on changes in fair value of biological assets and agricultural subsidies, amounted to EUR 11.32 million per 12 months period of 2019 compared to EUR 4.29 million the year before.

Preparation for 2020

Weather conditions in the autumn of 2019 were favorable for seasonal sowing and other preparatory land works for the cycle of 2019/2020. As a result, the seeding of winter crops and land preparation works were completed on time. The warm winter season has resulted in a good condition of winter crops. Favorable weather in 2019 autumn also allowed for proper land preparation for summer crops in the run-up to the spring 2020. As a result, the Group is well prepared for the season of 2019/2020 and has a positive outlook on the next year harvest potential.

Mushroom growing segment

The revenue from the mushroom growing segment was EUR 26.32 million for twelve months period of 2019, around EUR 2.44 million or 10% higher compared to the same period in 2018 when the revenue was EUR 23.88 million.

The increase in the mushroom sales revenue of 2019 relates to greater average sales prices. Serving fresh market became possible due to decreased amounts of processed goods in the category.  Since prices of fresh mushrooms are higher than those sold to processors, increased volume share of fresh mushrooms also had positive impact on average prices.

Gross profit of mushroom growing segment per twelve months period of 2019 increased by EUR 0.77 million and equaled to EUR 2.49 million. During the same period in 2018, the Group generated EUR 1.73 million of gross profit in mushroom growing segment.

Dairy segment

Sales revenue from the Dairy segment amounted to EUR 10.14 million per twelve months of 2019 and was around 13% higher compared to the same period a year before when it was EUR 8.95 million. This change was driven by an 8% increase in milk sales (due to increased production efficiency) and a 7% increase in the average milk sales price ( an increase driven by  the proportion of milk sold with organic premium). Quantity of milk sold per twelve months period of 2019 amounted to 24.49 thousand tons compared to 22.63 thousand tons during the same period in 2018. The average milk price in 2019 was 385 Euros per ton compared to 359 Euros per ton in 2018. The share of milk sold with organic price premium in 2019 was about 74%, while in 2018 it was 46%.

Increased production and sales efficiency resulted in EUR 0.49 million lower gross loss of dairy segment, totaling in EUR 1.93 million gross loss in 2019 compared to EUR 2.42 million gross loss in 2018.

Fast-moving consumer goods (FMCG) segment

Total sales of the fast-moving consumer goods increased by 50% and amounted to EUR 2.79 million per 12 months period of 2019 compared to EUR 1.86 million the same period last year.

In 2019, the Group has entered into an agreement with a retailer to begin supplying the US market. Negotiations with retailers in  the US and other export market  chains continue. A stronger position in the Swedish market for private label soups and other canned goods was established.

While the segment is still in the high-growth phase, the gross profit was not significant and amounted to EUR 0.05 thousand per twelve months of 2019 in comparison  to EUR 0.07 thousand during the same period in 2018.

Operating expenses

For the twelve months period of 2019 the operating expenses were EUR 11.53 million and increased by EUR 1.12 million or 11% compared to the same period in 2018.

Financial data in MS Excel file

In order to ensure more convenient access and analysis of the financial data of the Group, AUGA group has prepared and published financial data that includes both the data from previous  and the most recent reporting periods in MS Excel format. The data file is available in the following link: http://auga.lt/en/for-auga-investors/

CEO
Kęstutis Juščius
+370 5 233 5340